You’ve heard all about ChatGPT, the AI chatbot you can use to answer any question—or, you know, write a thank-you note, craft a cover letter, or even have a spoken conversation. Now, as a savvy investor, you’re wondering: How can I get a piece of the AI pie?
First off, ChatGPT is not a publicly traded company, so it is not possible to invest directly in it. But what should you know about investing in the AI hype generally? Naturally, I went directly to the source and asked the AI chatbot if I should invest in it. Here’s what I was told:
“As an AI language model, I cannot provide financial advice or make specific investment recommendations. However, if you are interested in investing in OpenAI, it’s important to do your own research and carefully evaluate the potential risks and benefits before making any investment decisions. Some factors you may want to consider include the company’s financial performance, market trends, and competitive landscape. Additionally, you may want to consult with a financial advisor who can provide personalized advice based on your individual financial situation and goals.”
In other words, ChatGPT has admitted that it can’t steal my job quite yet, and that real people are still needed for proper financial advice. Let’s add a human touch and flesh out the chatbot’s advice when it comes to investing in AI.
Do your own research
Hey, I’m not the one giving you homework, I’m just repeating what the robot said. What you need to know is that if you’re interested in investing in artificial intelligence, what you’re really investing in are companies that are developing AI technologies, such as Google, Microsoft, or Amazon. However, diversifying should always be a priority when you’re investing; that means you should research smaller companies in addition to the flashy tech giants.
In addition to household names, other ways to invest in AI are individual stocks linked to AI and AI-focused ETFs.
Individual stocks linked to AI
You can invest in companies that build AI hardware, develop AI solutions or sell AI development tools. Look into chipmakers like Micron Technology or Nvidia, or software developers like C3 AI. (These are not explicit recommendations for what stocks to buy, just examples of AI-related stocks.)
AI-focused ETFs
It’s risky to individually select and buy a few stocks you think look promising. As Money.com explains, ETFs are a wise way to get a “more diversified approach to AI investing than going all in on specific stocks.” To put it simply: When you invest in an ETF, you get a bundle of assets, and right now, the AI-focused bundles are increasingly popular.
Of course, AI-focused ETFs come with their own set of risks. For instance, even if you diversify the AI-related stocks within your bundle, that diversification won’t do you much good if the whole AI sector takes a hit.
Ultimately, the most important advice from ChatGPT is that if you want to grow your money with AI, you need a human touch. Consult with a financial advisor before making any investment decisions.